INTERNSHIP REPORT of GENCO-III

INTERNSHIP REPORT
SUBMITTED TO
INTERNSHIP INCHARGE
SIR TAYMOOR-UL-HASSAN
SUBMITTED BY
RAASHID JAVED
ROLL # 32
MBA (M1) 4TH
SESSIOON (2011-2015)
DEPARTMENT OF MANAGEMENT
SCIENCES
Limit
(Genco-III) Northern Power Generation Company

Internee: Raashid Javed
PREFACE
2 | Internship Report
University Of Bahawalpur
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Practice makes a man perfect and practical knowledge is essential in order to

introducing with the practical life.
Theoretical knowledge is not such
important without with combination of practical knowledge. It is the part of

its academic curriculum to do internship of MBA student to various business
concerns with view to allowing students to get opportunity to acquire
practical and professional knowledge. As the partial fulfillment of MBA in
marketing the writer of this report was also assigned the task of preparing
the term paper, the topic was (Genco-III) Northern Power Generation
Company Limited. To adjust myself in such a large organization was not an
easy task, but by the grace of Almighty Allah aids my internship in a befitting
manner and I learned a lot about the overall generation company. The report
has been prepared after careful observation of the all component of
organization. This report is a thorough essence of my rigorous studies which
I undergone through in a period of two months in a generation company. I
have exclusively studied and observed the operations/ functioning of the
company and tried my best to abreast myself with all the dimensions of the
generation company. It was a great experience to work there and contribute
handsomely in the process of appraising its pros and cons and feeling to be a
significant part of the company. I am thankful to all those who helped me in
one-way or the other and guided me in the preparation and compilation of
this report in a presentable fashion.
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ACKNOWLEDGEMENT
Success and achievement is possible only through hard work, determination
and strong will. We are grateful to ALLMIGHTY ALLAH who gave me the
strength to think, plan and act accordingly which make us possible to
complete my internship.
Though it is a literary tradition to acknowledge the contribution and help by
different people and organization in the completion of an internship, but as a
matter of fact some words cannot express our gratitude to the various
helping hands. It is very difficult to appreciate each and every person for his
contribution, but there is a standing contribution of our advisor Sir Munir
Abbasi, who was there with us at the time we needed him and without his
guidelines it would be difficult for us to complete this internship successfully.
Thanks to
all
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DEDICATIO
N
At first dedicating this work to Almighty ALLAH,
without his mercy and sympathy I was not able
to accomplish this work, Almighty ALLAH gave
me power and confidence to done my internship
and also HOLY PROPHET HAZARAT MUHAMMAD
(Peace Be upon Him) who is a light for humanity.
I also dedicate this work to my lovely parents
with deepest gratitude whose love and prayers
Table of contents
Contents
Numbers
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EXECUTIVE SUMMERY
10
INTRODUCTION OF WAPDA
11
PAKISTAN ELECTRIC POWER COMPANY

14
THERMAL GENERATION
18
VISION AND MISSION
22
NORTHERN POWER GENERATION COMPANY LIMITED

24
Background
24
Introduction
Objectives
25
27
Goals
28
Hierarchy
29
Ownership
30
Authority fund
Capacity
31
32
Policy
35
Profile of bod and sr. Management
37
DEPARTMENTS
Material management
38
39
Human resource management
43
Management information system
47
Finance/ coordination wing
48
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Business strategy unit
51
Marketing department
53
Monitoring and surveillance
56
Distribution department
57
Customer services department
59
Training center
59
Complain center
60
FINANCIAL ANALYSIS
61
SWOT ANALYSIS
77
Strength
78
Weaknesses
79
Opportunities
80
Threats
81
RECOMMENDATIONS
82
CONCLUSION
84
ANNEXURE
87
EXECUTIVE SUMMARY
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According to internship requirement, I passed six weeks in Genco from 15-72013 to 29-08-2013. This was so much learning period for me. This
internship report is about Thermal Power Station Muzaffargarh also named as
GENCO_III. In GENCO_III ,there are total 6 units in which Phase-I consists of 3
units of 210MW each and Phase-II consists of
2 units of 210MW each and a
separate unit namely unit-IV having a capacity of 320MW.So a total of

1,370MW capacity of GENCO-III. The generators installed are all furnace oil
generators consisting of a steam turbine and having water tube Boiler. In this
report, different protections of generator and transformers are discussed.
The circuit Breakers and their types and relays and the role of instrument
transformer are briefly discussed. The importance of switchyard is given in
detail. Later on, all types of motors are put into light.
In this report I give introduction history of the Genco. I passed so many days
in different departments Human resource, marketing, customer service cell,
finance department and management department. I describe working and
functions of those departments in this report. In this report I did SWOT
analyses, financial analyses, projects of Genco and projects which I did in
Genco. This project gives to me as assignment which is also helpful for the
organization. So I give some recommendations and conclusion at the end.
INTRODUCTION OF WAPDA
WAPDA, the Pakistan Water and Power Development Authority, was created
in 1958 as a Semi-Autonomous Body for the purpose of coordinating and
giving a unified direction to the development of schemes in Water and Power
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Sectors, which were previously being dealt with, by the respective Electricity
and Irrigation Department of the Provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e.
WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is responsible
for water and hydropower development whereas PEPCO is vested with the
responsibility of thermal power generation, transmission, distribution and
billing. There is an independent Chairman and MD (PEPCO) replacing
Chairman WAPDA and Member (Power) who was previously holding the
additional charges of these posts.
WAPDA is now fully responsible for the development of Hydel Power
and Water Sector Projects.

PEPCO has been fully empowered and is responsible for the
management of all the affairs of corporatized nine Distribution
Companies (DISCOs), four Generation Companies (GENCOs) and a
National Transmission Dispatch Company (NTDC). These companies are
working under independent Board of Directors (Chairman and some
Directors are from Private Sectors).

The Companies are administratively autonomous and leading to
financial autonomy by restructuring their balance sheets by bringing
their equity position to at least 20 percent, required to meet the
prudential regulations and to facilitate financing from commercial
sector (approved by ECC).

The Loan Liability Transfer Agreements (LLTA) has been signed with
Corporate Entities and execution of loan transfer is complete.

All Entities have the physical possessions of all their operational
assets.
On 24th Feb. 2007 Ministry of Water & Power notified NEPRA approved
Tariff for all Distribution Companies replacing unified WAPDA Tariff.

Legal Agreements such as Business Transfer Agreements, Operation
Development
Agreement,
Energy
Supply
Agreement,
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Supplementary Agreement and Fuel Supply Agreement etc. were

executed
between
WAPDA
and
Corporate
Entities
to
facilitate
commercial operations.
Regulatory instruments like Grid Code, Distribution Codes, Performance
Standard for Distribution Companies and Transmission Companies
were drafted and got approved from in 2007.

All major lenders gave their consent for transfer of their loan from
WAPDA to Corporate Entities, thus 326 loan assumption agreements
were
signed
amongst
respective
Companies,
WAPDA
and
EAD
(Economic Affairs Division) GOP.

CPPA is established under the coverage of NTDC for payments from
DISCOs to IPPs, GENCOs and NTDC. Ultimately, it will function
independently under Federal Govt. and all forthcoming IPPs will be
under CPPA.
The Charter of Duties of WAPDA is to investigate, plan and execute schemes

for the following fields:
Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.
Prevention of Water logging and Reclamation of Waterlogged and
Saline Lands.
Flood Management.
Inland Navigation.
The Authority comprises of a Chairman and three (3) Members working

through a Secretary.
WAPDA is one of the largest employers of human resources in Pakistan. It has
150,000 employees, which make it 2nd largest organization of Pakistan, after
Pakistan army. Over the years WAPDA has built-up a reservoir of Technical
know-how and expertise which has made it a modern and progressive
organization.
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WATER WING
In 1959, WAPDA was created to undertake the task of
investigating, planning and executing schemes for irrigation,
drainage, prevention of water logging and reclamation of saline
land as an autonomous body responsible for integrated
development of water and power resources in Pakistan. The
organization was also entrusted with the work of implementing
Indus Basin Settlement Plan signed between India and Pakistan
in 1960 to develop replacement works for management of river
water and irrigation system. Since then it has been engaged in
building water development projects which include extensive
research
and
investigation
to
augment
country's
water
resources.
POWER WING
Power Wing is currently headed by
Member (Power) PEPCO.
PAKISTAN ELECTRIC POWER COMPANY

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The Pakistan Electric Power Company (Private) Limited (PEPCO) has been
entrusted the task of managing the transition of WAPDA from a
bureaucratic structure to a corporate, commercially viable and productive
entity. It is a mammoth task and progress in the initial months was rather
slow, but one should keep in mind that responsibility is enormous and
transition is a long drawn process.
Before going into further details of the restructuring program, it is
necessary to understand the shift in the GoP policy. The GoP, in line with its
Strategic Plan of 1992 approved by the cabinet committee, had decided to
restructure the entire power sector in the country
De-regulation of power sector
Promotion of IPPs
Restructuring of WAPDA
Privatization of select corporate entities
The factors responsible for the shift in policies were: generation capacity
could not be increased to
meet demand; WAPDA's
growth caused
inefficiencies, 'demand suppression' and high tariff policy, proliferated theft.

All these factors, over the years, adversely affected WAPDA's financial
condition. As part of this program WAPDA's functions under its Water Wing
and Power Wing were to be segregated. It was previously envisaged that all
power generation, hydel as well as thermal, would be corporatized. However,
later on it was decided that the hydel generation should remain part of the
Water Wing or the remaining WAPDA.
PEPCO
has
prepared
the
conceptual
framework
and
is
following
comprehensive strategy whereby WAPDA's vertical-monolithic Power Wing

has been restructured into twelve (12) distinct autonomous entities under
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Companies Ordinance 1984. These are: three generation, one transmission

and eight distribution corporate entities
The restructuring program of WAPDA's Power Wing is based on the new
strategic policies of the GOP and endorsed and supported by the donor
institutions. The aim of this transition is to install corporate and business
culture through: adopting of good business practices, enhancing productivity
and efficiency, including customer orientation and service culture, improving
quality of services setting performance targets, reducing costs, theft and
wastage. This will be based on extensive use of information technology,
management information systems, monitoring and prudent decision making.
It has been decided that some of the functions currently being performed by
WAPDA will continue to remain with WAPDA/GoP in the largest interest of the
country.
These are:
Hydel development
Hydel operation
It was also decided that some of the common facilities, being previously
shared by the two wings and by various departments within the power wing,
should be segregated. These would initially remain with WAPDA unless
transferred to any other particular corporatized entity. These facilities include
hospitals, schools, training facilities etc.
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ACCOMPLISHMENTS
Major accomplishments to-date is as follows:
Operationalized Pakistan Electric Power Company (PEPCO) as a Private
limited management company owned by Government of Pakistan (GOP) to
steer, manage and oversee the corporatization/commercialization reforms
program.
Formed fourteen (14) Corporate Entities as following:
Four (4) Thermal Power Generation Companies (GENCOs)

One (1) National Transmission & Power Dispatch Company (NTDC)
Nine (9) Distribution Companies (DISCOs)
Constituted Board of Directors of the corporate entities with the
induction of Directors from the private sector and PEPCO to utilize their
experience for formulation of effective corporate policies.

Executed Legal agreements such as Business Transfer Agreements
(BTA), Operation and Development Agreement (ODA), Electricity
Supply Agreements (ESA), Bulk Supply Agreements (BSA) and Fuel
Supply Agreements (FSA) between WAPDA and corporate entities for
autonomous commercial operation.

Transfer of WAPDA staff to the respective corporate entities (Manpower
Transition Program Phase-I completed). Phase II is scheduled for
completion by June, 2000.

Obtained Federal Tax Exemptions for the corporate entities for Capital
Value Tax, Income tax and Wealth Tax.

Obtained consent of most of the creditors.
Prepared, reviewed, approved and adopted opening Balance Sheets of
the corporate entities as of 30-06-1998.
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Privatization schedule for Faisalabad Electric Supply Company (FESCO)
finalized & sent to the Privatization Commission of Pakistan

Investment Plans for Distribution Power System Rehabilitation prepared
and finalized by the Distribution companies

Financial Restructuring of WAPDA approved by GOP
Filed applications by all Power Distribution Companies (DISCOs) for
obtaining License from National Electric Power Regulatory Authority
(NEPRA). Public hearing by NEPRA for processing of applications of
Lahore Electric Power Supply Company (LESCO) and Gujranwala
Electric Power Company (GEPCO) completed

Submitted proposal to GOP for Price consideration to be paid or settled
by GOP with WAPDA so that share of the corporate entities owned by
WAPDA can be transferred in the name of GOP.
THERMAL GENERATION
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PEPCO's Thermal Power Generation is mainly based on generation of power

from its Steam Turbo-Generators, Gas Turbines (simple as well as Combined
Cycle Units) installed at different Power Stations located in Sindh, Punjab and
Baluchistan provinces. Indigenous Gas & Coal is the main fuel whereas
Furnace oil and HSD are also used as alternative fuel. .
As per Government of Pakistan policy all thermal power generation has been
restructured and four corporatized companies namely Jamshoro Power
Generation Company Limited (GENCO-1) head quarter at Jamshoro district
Dadu near Hyderabad Sindh, Central Power Generation Company Limited
(GENCO-2) head quarter at Guddu district Jacobabad Sindh and Northern
Power
Generation
Company
Limited
(GENCO-3)
headquarters
at
Muzaffargarh and Lakhra Power Generation Company Limited (GENCO-IV) at

Khanote (Sindh) have been formed and registered. Functioning of GENCOs
has commenced.
Structural formation of all four GENCOs is as under:
JPCL
CPGCL
NPGCL
LPGCL
(GENCO-1)
(GENCO-
(GENCO-3)
(GENCO-4)
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2)
TPS Jamshoro TPS Guddu TPS Muzaffargarh

GTPS Kotri
FBC Lakhra
TPS Quetta NGPS Multan
TPS GUDDU
a. Location
Thermal Power Station Guddu is situated on the right bank of River Indus
near Guddu barrage, 10 Km from Kashmore in district Jacobabad (Sindh). It is
about 60 Km away from Sadiqabad and about 160 Km from Sukkur. It is a
confluence of three provinces, i.e. Sindh, Punjab and Baluchistan.
b. Fuel (Gas & F. Oil) Supplies
The existing daily gas allocation is 285 MMCFD, (from Kandhkot = 115
MMCFD, Sui = 40 MMCFD Mari=90 MMCFD & Tullow= 40 MMCFD). Daily
requirement of gas is about 310 MMCFD and in this way there is short fall of
about 25 MMCFD. Furnace Oil is also used to meet-with short fall of Gas
quota. Furnace oil is received through Railway Wagons and Tank Lorries from
Karachi.
TPS QUETTA
a. Location
This Power Station is situated at Quetta.
b. Fuel (Gas) Supplies
Natural gas is the main fuel being used for combustion as and when
available basis. Company under the new management (PEPCO) is trying to
make an agreement with the gas company regarding firm gas supply.
TPS MUZAFFARGARH
a. Location
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TPS Muzaffargarh is located in the middle of the country between the River
Indus and River Chenab, 2.5 Km to North-West of Muzaffargarh Town in
District Muzaffargarh. The nearest Airport facility is at Multan at a distance of
45 Km North-East of Muzaffargarh.
b. Fuel
Dual fuel combustion provision (Gas & Furnace Oil) has been made for all the
machines. Furnace oil is transported through Railway Wagons and tank
Lorries.
NGPS MULTAN
a. Location
Power Station is located at Piranghaib about one Km towards North from
Piranghaib Railway station and at a distance of 10 Km from Multan city
towards East.
b. Fuel
machines. 15 MMCFD gas is allocated and the short fall is met with by
furnace oil firing.
SPS FAISALABAD
a. Location
This Power Station is situated at about 10 Km from Faisalabad city on
Faisalabad-Sheikhupura road. Nishatabad railway station is 04 Km in the
West and Rakh branch canal flows close to the power station in the East.
b. Fuel
machines. Requirement of Gas on 70% load factor is about 22 MMCFD.
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GTPS FAISALABAD
a. Location
This Power Station is situated (adjoining SPS) at about 10 Km from Faisalabad
city on Faisalabad-Sheikhupura road. Nishatabad railway station is 04 Km in
the West and Rakh branch canal flows close to the power station in the East.
b. Fuel
Dual fuel combustion provision (Gas & HSD Oil) has been made for all the
machines.
GTPS SHAHDARA
a.Location
This Power Station is situated at Shahdara on right bank of river Ravi Lahore.
b. Fuel (Gas) Supplies
Natural gas is the main fuel being used for combustion as and when
available basis. Company under the new management (PEPCO) is trying to
make an agreement with the gas company regarding firm gas supply.
FBC LAKHRA
a. Location
The Lakhra Power Station is located near Manzoor-abad/Khanote in the
District of Dadu (Sindh) on the right bank of mighty Indus River. Hyderabad
city is about 46 Km in North-East and Karachi is about 200 Km South-West of
the Power Plant. The Power Station can be readily approached from North
and South by the connecting highways.
b. Fuel
All the three units are based on Coal, which is being recovered by primitive
underground mining method from Lakhra coal mines, 25 Km from Lakhra
Power Station.
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The detail of three GENCOs showing Power stations, number of units

installed, capacity, make, year of commissioning and fuel used is given
below in table-1, 2, 3&4.
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To make Pakistan Power Sector customer

friendly, efficient, able and responsive in
meeting tee electric energy requirements of
industry, business and domestic customers,
and move to an energy sufficient model
from the current energy deficient scenario,
on commercially viable and sustainable
basis, in order to support the high growth
economy and to meet the government's
objective of "Power for All".
VISION
To fully enable the reform and restructuring of the
Pakistan Power Sector and to transform the fourteen
(14) Corporate entities (CE's) into autonomous and
commercially viable enterprises, thru induction of
effective corporate management, best business and
utility practices, and well-engineered systems, and
bridge the ever growing supply-demand gap, so as to
meet customers electric energy requirement on a
sustainable and environmentally friendly basis, thru
best utilization of resources, in an efficient, ethical and
customer friendly manner, with responsibility to the
community and the Nation.
MISSION
GENERATION COMPANIES
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Jamshoro Power Company Limited (JPCL) GENCO I

Central Power Generation Company Limited (CPGCL) GENCO II
Northern Power Generation Company Limited (NPGCL) GENCO
III
Lakhra Power Generation Company Limited (LPGCL) GENCO IV
ONE TRANSMISSION COMPANY
National transmission & power dispatch company (NTDC)
EIGHT DISTRIBUTION CORPORATE ENTITIES

1.
2.
3.
4.
5.
6.
7.
8.
LAHORE
ELECTRIC
SUPPLY
COMPANY
LIMITED
GUJRANWALA
ELECTRIC
POWER
COMPANY
FAISALABAD
ELECTRIC
SUPPLY
COMPANY
ISLAMABAD
ELECTRIC
SUPPLY
COMPANY
MULTAN
COMPANY
PESHAWAR
COMPANY
HYDERABAD
LIMITED
QUETTA
ELECTRIC
ELECTRIC
ELECTRIC
SUPPLY
ELECTRIC
COMPANY
POWER
SUPPLY
COMPANY
SUPPLY
(LESCO)
(GEPCO)
(FESCO)
(IESCO)
(MEPCO)
(PESCO)
(HESCO)
(QESCO)
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(GENCO-III) NORTHERN POWER

GENERATION COMPANY LIMITED
MISSION STATEMENT
Our mission is to bring the assurance of energy to our
customer, with world class quality and commitment for
satisfaction as we in our quest for excellence
BACKGROUND
Northern Power Generation Company Limited owns and operates thermal
power generation facilities located at Muzaffargarh, Multan and Faisalabad.
Installed capacity of the generating assets is 1,921 MW, which has declined
over the years to dependable capacity of 1,169 MW.
Complex pattern of
internal and external factors constrain operating and financial performance

of the company. The company has been operating with a negative bottom
line, which has jeopardized sustainability.
Government of Pakistan aims to address the countrys power sector issues
by implementing Power Sector Reform Program. As part of the program the
public sector thermal power generation companies (GENCOs), including
NPGCL were required to develop and implement Business Plans to effectively
respond to constraints and obstacles to satisfactory performance.
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INTRODUCTION
This
thermal
power
station
is
situated
in Multan divisions
district
Muzaffargarh. In 1985 Gulam Ishaq Khan make an agreement with Russia for
the establishment of the power station. Initially this Project was documented
for Multan. But due to certain reasons like availability of land, cost etc. This
project shifted to Muzaffargarh by the name of Multan II. Initially three units
were established in Muzaffargarh, called phase 1. These are also known as
Russian units. These units are operated with Oil & Gas. The each unit is of
210 M.W. capacities. China establishes their units to meet the need/demand
of electricity. These units are also 210 M. Watt.
China has also established a unit called unit #4 witches has the capacity of
320 M. watt. The unit #4 is fully computerized. All its functionality is handled
through computerized programs. About 1500 people are working in this
organization including both technical & non-technical. To make this project
Economic District Muzaffargarh was select. Other Reasons for this location is
that there is no thermal house in this Area at that time the Area like Multan
Division and D.G Khan lies at center of Pakistan approximately. The selection
of this location may be due to safety reason in war conditions.
Pakistan Water and Power Development Authority (WAPDA) is an integrated

utility in Pakistan. WAPDA is responsible for the development of Hydel Power
and Water Sector Projects in Pakistan. WAPDA operates through- Power wing
and Water wing, it is engaged in the generation, transmission and
distribution of power. In addition, it also manages irrigation, water supply and
drainage system in the country. Further, it is also responsible for prevention
of water logging and reclamation of waterlogged and saline lands.
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The Pakistan Water and Power Development Authority (WAPDA) was

established through an
act
of
parliament
in
February
1958
for
integrated and rapid development and maintenance of water and

power resources of the Country. This includes controlling soil salinity
and water logging to rehabilitate the aff ected land in order to
strengthen the predominantly agricultural economy of the country.
As per the charter, amended in March 1959 to transfer the existing
electricity departments from the federating units to it, WAPDA has been
assigned the duties of investigation, planning and execution of projects and
schemes for:
Generation, Transmission and distribution of power,

Irrigation, water supply and drainage,
Prevention of water logging and reclamation of saline land,
Flood control and Inland navigation.
Under the later on developments, vis--vis the energy policy 1994, setting
up
of
thermal power generation projects was shifted to the private sector. Similarly
, as a result of restructuring
of the
power
wing, the
utility
part was
corporatized into independent companies. This shift from convergence to

divergence gave birth to 13 entities to operate in different zones. These
are national transmission
and Dispatch
Company
(ntdc),
four thermal
power generation companies (gencos) and eight distribution companies

(discos).
The present status of these companies is of corporate public limited
entities under the Umbrella of EPCO, ultimately to go privatized as
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planned. The residual Power Wing is therefore now responsible for

major hydro-electric power projects and schemes in operation.
OBJECTIVES
Pakistan Electric Power Company (PEPCO) unveiled new face of Pakistan's
power sector with the crisis management objectives to improve the
efficiency of the power sector and to meet customers' electric energy
requirements on a sustainable and environment friendly basis. The specific
objectives of PEPCO are:
Objectiv
es
Stop load shedding,

Revamping of generation units and to
improve customer services and
Objectiv
es
Constructing new grid stations,

Reducing line losses; minimizing tripping and
theft control,
Development of an integrated automated
power planning system for generation,
transmission and distribution to ensure
system stability, fault isolation and upgrade
relying, metering and tripping system at
NTDC as well as Discos level.
Objective
s
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GOALS
The following power projects are in pipeline and will be included in GENCO III
after their commissioning.
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G
O
A
L
S

* 425MW combine cycle dual fuel (furnace +
HSD) at Nandipur. (3x 95MW gas turbine +
138MW steam unit)
* 320MW UAE gifted power plant at GTPS
Faisalabad. (5x16MW Fr5 gas turbines +
8x30MW Fr6 gas turbines)
* 525MW CCPP at Chichokimalian. (3x117MW
gas turbines + 175MW steam turbine
* Morale building and to create sense of
belonging amongst company employees.)
* Smooth and consistent flow/supply of
electricity.
* Prompt restoration of disrupt electricity
supply.
* Accurate and timely meter reading and
billing.
* Provision of electricity connection in
minimum time.
* Open door policy to facilitate our customers.
** Energy
message
dissemination.
Special saving
concessions
for quick
and timely
* Creatingofpositive
image of Genco.
payment
bill.
* Availability of stores to deal with
emergencies.
* Feedback through customer services center.
* Create awareness amongst employees for
adopting
* safety measures while working on lines.
* Take steps for welfare of company
employees.
HIERARCHY OF GENCO III
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OWNERSHIP
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The company is wholly owned by the Government. Since the incorporation of

the company in 1998 after unbundling of WAPDA, PEPCO has been managing
financial, human resource and procurement matters of the company. PEPCO
is likely to be wound up by the 3rd quarter of 2011 that may lead to full
corporate autonomy of the company within public sector.
EXTERNAL ENVIRONMENT
Present market composition, size and structure as well as the regulatory
regime have been assessed with an assessment of likely market trends in
short and medium term to map strategic positioning of the company.
Pakistan power sector is under severe demand pressure and is likely to
remain so until a foreseeable future.
Thermal power is more expensive as compared to hydro power. Gas is a
cheaper fuel for power generation in Pakistan but gas reserves are depleting
and new discoveries are not on the horizon. Furnace oil is more expensive
and exposed to price volatility. Increased dependence of power sector on
furnace oil in the recent years has impacted electricity price in the country.
However, until power mix shifts back in favor of hydro power and new gas
discoveries are made, oil fired plants are expected to remain in full possible
production, constrained only by affordability factors. Any expansion in oil
fired capacity is therefore not likely to be a right direction.
LOCATION:
This thermal power station was established in Muzaffargarh District Multan.
Initially agreement for this project is for Multan. But due to costly land
in Multan this Projected shifted to Muzaffargarh. If this project is establish
in Multan. A lot of money spent on land which increases its fixed cost.
AUTHORITY FUND
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The Authority Fund consists of the following:
Loans
governments
Sale proceeds of WAPDA Bonds
Loans obtained by the Authority with general sanctions of the
government
Fo re i g n a i d s a n d l o a n s o b t a i n e d f r o m t h e I B R D , A D B a n d
other
and
grants
obtained
from
the
federal
and
provincial
i n t e rn a t i o n a l l o a n giving agencies on such terms and
conditions as may be approved by the government

Sale of power
All other sums received by the Authority
CAPACITY
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Capacity is the maximum rate of output for a facility. The facility can be a
workstation or an entire organization.
There are two phases working at thermal power station Muzaffargarh.
1: Phase I
2: Phase II
PHASE 1:
In phase 1 there are three units of capacity 210 M. watts. This phase was
established by Russia also called Russia phase.
PHASE 11:
In phase II there are two units of capacity 210 M. watts and one unit of
capacity 320 M. watts.
The phase 1 can produce 15120000 units/24 Hours.
So the total capacity of both the two phases is 48000,000 units/24 Hours.
But this is situation when all the units are working with full capacity. But
there are little situation when this type of occurrence. But they utilize their
capacity according to the requirements. All the decisions about the utilization
are done at higher level. NPCC Islamabad gives all the instructions about the
utilization. The reason is that all the thermal houses in Pakistan are
connected just like a ring topology (the term used in networking). When
sufficient amount of water are available the more concentration are given to
produce Hydroelectricity because this source of electricity are much cheaper
than thermal electricity.
Even there are situation, when the thermal house need electricity for their
staff colony and for the power station from other station.
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They use no such type of methods like

-
Causal Method
Judgment Method
Muzaffargarh
lant Detail
210
S.T.
2
Multan
Faisalabad (GTPS)
Rental Power Plant
MW
+
200
Faisalabad (SPS)
MW
S.T. 1x320 MW
3 x 65 MW
S.T.
8 x 25 MW G.T. + 150.5
2 x 66 MW S.T.
1 x 44 MW S.T.
Steam Turbine (S.T. ) & C.C. (Combined Cycle)
Gross Capacity
1921 MW
Fuel Type
Natural Gas/ Residual Furnace Oil (RFO)
License No.
GL/03/2002
MW R.E
Key Stats as of June 30, 2013
G.T
136.5MW G.T + 210
S.T.
Plant Type
MW
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Installed Capacity, MW 1921

Dependable Capacity, MW 1400
Maximum Power Dispatch, MW 1169
Units Generated, Mk Wh 564.705
Units Sent Out, Mk Wh 507.048
Auxiliaries, % 10.21
Load Factor, % 56.60
Plant Factor, % 50.57
FSA, quantity & period 180,000/month for 15 years
GSA, quantity & period Under negotiation
Active Rental Power Plant

62MW Gulf Power Plant COD dated 29.04.2013.
150MW Techno Empower Sumandri road Faisalabad Partially commissioned
on dated: 11.06.2013 at 60MW
201MW Reshma Power Plant COD yet not achieved.
200MW Yougen Power Plant COD 31.12.2013
150 MW Sahuwal Power Plant COD yet not declared.
POLICIES
POWER POLICY 1995
A. GENERAL
The Government of Pakistan in March 1994 announced the Policy Framework
and Package of Incentives for private sector power development in the
country. It received a tremendous response albeit for all Thermal Plants. GOP
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now intends to encourage proposals for power generation based on

indigenous resources namely its hydel resources. Hydel power being
cheaper, will provide tariff relief to the consumers, utilize indigenous
resources, involve Pakistani entrepreneurs and provide benefits of economic
growth
to
B.
NEED
THE
the
relatively
FOR
backward
SEPARATE
parts
HYDEL
of
Pakistan.
POWER
POLICY
In Pakistan nearly all hydro potential results from discharges into the Indus
River basin. Discharges result primarily from precipitation and snow-melt in
the northern mountainous ranges of the country. Discharges take place in
small rivulets coming further down to the bigger tributaries of River Indus
and then to Indus River itself. The development of hydropower projects
however, is characterized by remote locations and seasonal variations.
Pakistan's climatic factors including rainfall and snowmelt make it relatively
easy to develop hydel generation during the months of July to December
while the period January to June is extremely dry in terms of stream flow. In
order, therefore, to arrest the risk of over development in summer months
that would create an unbridgeable gap in winter months, the total
requirement of hydel plants in private sector may be limited to 2,000 MW up
to the end of the 9th Five Year Plan. However, the limit of 2,000 MW will be
reviewed at a later stage and can be enhanced to suit the national priorities
and power demand growth. Realizing that these peculiarities of hydropower
development necessitate special consideration the Government has devised
an attractive policy package to evoke response of private sector similar to
that
of thermal power. The salient features of the policy framework and package
of incentives devised for development of hydropower through private sector.
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CORPORATIZATION POLICY
In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS)
was approved by the GOP/CCI. As a part of the restructuring process,
WAPDA's functions under Water Wing and Power Wing were to be segregated
in the following manner:
Unified Power wing of WAPDA comprising of Generation, Transmission

and Distribution
to be restructured into fourteen (14) public limited
companies under the corporate law.

Restructure power sector assets to form autonomous commercial
entities through the adoption of prudent business practices, enhanced
efficiency levels, cost reduction and profit orientation

Promote competition to eventually offer affordable electricity to
customers.
Through corporatization
commercialization
process,
promote
commercial viability and enhance business value of the assets block of
each corporate entity.

Enhance privatization initiatives
Profile of BOD and Sr. Management

Prof. Abdul Hameed:
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Dean, Faculty of Electrical Engg. University of Engineering and Technology

Lahore, Director, BOD, TEVTA (200204) Chairman, Bismillah Education Trust
Regional Director, National Institute of Power (199298) Council Member, IEE
(UK) Council Member, IEEE (Pak)
Mr. Abdul Rasheed Mir:
14 years as CEO/Director Grays Leasing Ltd. 13years as Chairman/Director

Friend swear (Pvt) Ltd.
Khawaja Muhammad Younis
30 Years as Director, Mahmood Group of Industries, Member Executive

Committee (FPCCI), Member Central Executive Committee (APTMA), Director
Punjab Social Security Health Management Company, President, D.G.Khan &
Bahawalpur Chamber of Commerce & Industry
Mr. Muhammad Rafiq Butt:
35 Years as power plant engineer, presently working as GM (D&D)

Mr. Muhammad Naeem Akhtar:
33 Years as power plant engineer, presently working as CE (MMS)

Mr. Ghulam Mustafa Tunio:
34 years as power plant engineer, presently working as CEO (GENCOIII)
DEPARTMENTS
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MATERIAL
MANAGEME
NT
HUMAN
RESOURCE
MANAGEM
ENT
MANAGEMEN
T
INFORMATIO
N SYSTEM
FINANCE/
COORDINAT
ION WING
BUSINESS
STRATEGY
UNIT
MARKETIN
G
DEPARTME
NT
MONITORIN
G AND
DISTRIBUTI
CUSTOMER
ON
SERVICES
SURVEILLA
COMPLA
NCETRAININ
INT
G
CENTER
CENTER
MATERIAL MANAGEMENT
Material management is concerned about short range decisions about
suppliers, inventories, productions level, staffing patterns, schedules and
distribution. Decisions are these areas that affect the whole organization
directly or indirectly.
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Material management is important because whole of the organization

depends upon the material, so it is very important.
FUNCTIONS OF MATERIAL MANAGEMENT:

The functions generally performed in material management are purchase
there are generally two type of purchase.
. Foreign purchase
. Local purchase
FOREGIN PURCHASE
The organization foreign purchase process is centralized. They give tender to
that foreign who promise to full fill their demand within the time. Generally
G.M order for foreign purchase. In thermal organization there are specific
companies who can full fill their demands. They get there required material
from the parent company who have established the units. Reason is that
they know the requirement better than any other.
Foreign purchases are generally for 3-5 years. The foreign in entry are.
LOCAL BUYING:
Organization also makes local purchase according to the requirement. For
local purchase they use causal method. For local purchase first of all they
purchase informally, if the order is small.
For big order they advertise in newspaper and call tender. For local buying
they give order to they give order to successful tender holder and take 10%
security from that company.
For example, they select company for chemical purchases. They inform that
company that they may need this much quantity of chemical during the
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whole year. They inform one week before the need of that chemical during
the year. The local purchases are for one year.
VENDORS:
Vendors are generally those suppliers that are I so good certified. Mostly the
foreign purchases are done from certified companies but they may purchase
which are not ISO certified. The reason is that they make foreign purchase
from parent company of the plant establisher.
STORE MANAGEMENT:
Any purchase local or foreign is first of all checked before sending to store. In
case of local purchase they do not so much checking. But in foreign purchase
they
check
the
related department
inventory
experts.
before
These
sending
experts
to
store
check
the
through
the
inventory
and
recommend the inventory. It they reject the material then it is send back.
All the purchases are entered first by store department. It any department
need anything, they first of all contact with store department. Every section
has its own stock book entry of incoming inventory are done on five page.
-
Two pages for evaluation section.
Three pages for measurement section.
INVENTORY MANAGEMENT
Inventory is stock of anything held to meet the future demands of
organization.
Inventories
are
very
sensitive
part
of
any
organization. Inventory of local purchase are for one year and for foreign
purchase it is 3 years to 5years.
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ASSESSMENT OF INVERTORY:
For the assessment they are using the different method.
FOR OIL:
Assessments of oil requirement are usually depending upon the usage of oil
when the power houses are working at full capacity. Then they need oil very
much.
Generally the unit can operate with oil & Gas as well. When the gas is
available then in those days their demand for oil is less. The reason is that
electricity through gas is cheaper than through oil.
STORAGE OF OIL:
There are at least ten oil tanks for the storage of oil. These tanks are use full
for one week when the production of electricity are at peak the consumption
of oil is 3200-3500 metric ton for 12 Hours on full load.
STORAGE FOR PARTS OF MACHINORY:
Parts of machinery are purchase through foreign contracts. It is generally for
3-5 years. The cost on such type of inventory is high and ordering cost
transportation cost is also high. All the power houses in Pakistan keep the
information about such type of inventory. It they need such type of parts I
emergency they contact with other thermal houses.
Storage for Chemical:

Chemical in the case of local purchase are stored for one years only. But the
chemical which are original purchased are stored for 3-5 years chemical is
used for the treatment of the water. This treated water is used for making
steam to run turbine.
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Reorder Point for inventory

The fixed amount of quantity that remains with the stock to meet uncertain
need
REORDER POINT FOR OIL
Main inventory of thermal Houses is oil. The thermal house can be operated
by oil and by gas as well. The organization tries to operate with gas because
of its low cost. When the shortage of gas occurs then the more consecration
is given to generation through oil. The four Tanks out of ten are kept to meet
the uncertainty of supply. The total storage of capacity of oil is 16,000 MT to
22,000 MT
Reorder point for oil are measured through the information obtain
from E form used by ITR (Operation) section. In E-Form the unit
operators put information about the use of oil.
According to that information re order point for oil is measured. The
Organization also used Causal Method to measure the reorder point of oil.
REORDER POINTS FOR PARTS OF UNITS
The other inventory are parts of machinery, these parts are usually
imported so thy are ordered in so much quantity to meet need of next 3 to 5
years in thermal house there is another method check the reorder point for
parts of machinery. Usually all thermal houses provided information to each
other about the parts available in the store. If any thermal house need any
part in emergency and that part are not available in there store then they
can contact to another thermal house to meet the need.
HUMAN RESOURCE MANAGEMENT

Human Resource Management function is rudimentary and needs to bring in
modern HRM practices. HR managers need to be trained to lead technical
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work on corporate reorganization and support inclusive process to develop

and agree with stakeholders on HRM related initiatives.
RECRUITMENT AND SELECTION POLICY

Give ad of vacant seats in the newspaper like Dawn, Jang, and Express
etc.
Some seats are reserved on Quota like Baluchistan, Sindh and FATA.
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75% seats are reserved for District Muzaffargarh on scales below 14

BPS.
Retired and during service death servants have applied child quota
about 5% in vacant seats.
Higher grades jobs above 14 BPS are open for all Pakistan but give
District Muzaffargarh residence n or near.
SELECTION PROCEDURE
Take written test s consists of MCQs and some subjective questions of
related fields like junior engineer etc.
Finally Successful candidate have taken interview by Panel.
Panel seated by CEO and members who selected by CEO.
ORIENTATION AND TRAINING
Below 16 BPS training center is in Faisalabad (GAS TURBINE POWER
STATION FAISALABAD) and duration is 3 months.
During this training give basic pay without allowances and hostel and
mess is totally free.
Above 17 BPS candidate
training
center is in Islamabad ( WAPDA
Academy Islamabad)
During Training give brief orientation of GENCO-III and give basic pay
and fee accommodation and mess.
SERVICE AND PAY ROLL SYSTEM

Servant starts his services maintain service book for each candidate
who joined company. Basic pay is according to federal government pay
but allowances are 50% of Pay and 25% Muzaffargarh allowance.
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Pay increase with Federal Government policies a fix increment

according to pay scale.
Annual Record is written by clerk and signed and verified by
Residential Engineer (R.E.)
After 2 years departmental exams will be taken and sent to training to
training stations.
DUTY TIMING AND FACILITIES
Two type of duty schedule is running in GENCO-III
(a) General (8-2pm)
(b) Shift (8 hour)
All facilities are given to employees like
Free medical (whole family)
Transportation to other city
House
Electricity
APPRAISAL AND PROMOTION
There are no such appraisal system present in the organization
Seniority is major parameter.
There is no such standard s set for appraisal in the government

organization.
Promotion based on seat availability on different Thermals seats.

Below and equal 17 grade post filled with in GENCO but above grade
seats are filled on overall seniority based in four GENCO.
SUCCESSION POLICY
Top seats are filled by board which established by Chairman WAPADA
under supervision of Sectary WAPDA.
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The board consists of three members who selected by Chairman

WAPDA
Member of Power
Member of Finance
Member of Water.
PROFILE OF BOD AND SR. MANAGEMENT
MANAGEMENT INFORMATION SYSTEM
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The company operates with paper-based information and reporting systems,

which has become a cause of sub-optimal results by affecting quality and
timeliness of information leading to slow or lack of timely action.
FINANCE/ COORDINATION WING
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M e m b e r ( Fi n a n c e ) i s re s p o n s i b l e f o r t h e f u n c t i o n i n g o f t h e
departments
headed
of
Fi n a n c e ,
by
Internal Audit and Budget and Accounts
Chief
Auditor
(Internal
Audit)
and
Director G e n e r a l Fi n a n c e ( B & C ) . H e a l s o e xe rc i s e s a d m i n i s t r a t i v
e c o n t ro l o v e r G e n e r a l M a n a g e r (Central Contracts Cell), Director
General (Taxes) and Director Public Relations. Managing D i re c t o r
( Ad m i n )
is
vested
administration
and
with
the
services.
re s p o n s i b i l i t y
for
overall
Secretary WAPDA in addition to
looking after day-to-day aff airs of the Secretariat, prepares minutes

of the Authoritys meetings, maintains records of its decisions and issues its
directives and coordinates among the three Wings besides monitoring
and implementation of Authoritys decisions.
G e n e r a l Fi n a n c e ( B & C ) . H e a l s o e xe rc i s e s a d m i n i s t r a t i v e c o n t r
o l o v e r G e n e r a l M a n a g e r (Central Contracts Cell), Director General
(Taxes) and Director Public Relations. Managing D i re c t o r ( Ad m i n ) i s
v e s t e d w i t h t h e re s p o n s i b i l i t y f o r o v e r a l l a d m i n i s t r a t i o n a n d
s e r v i c e s . Secretary WAPDA in addition to looking after day-to-day
aff airs of the Secretariat, prepares minutes of the Authoritys meetings,
maintains records of its decisions and issues its directives and coordinates
among
the three
Wings
besides monitoring
and implementation
of Authoritys decisions.
Financial Management function needs to be strengthened in a relatively short
time, necessitated by performance pressure but made possible because of
the window of opportunity after exit of PEPCO.
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It has five sections
B.T.B & C.P.C Section

BANKING Section
THERMAL POWER ACCOUNT Section
ADMIN &TAXES Section
General Accounting
BANKING SECTION
Assistant Manager Accounts;
Account Assistants ;
Zahaid Nawaz Dasti

Mr. Imtiaz
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Mr. Hoshyar
Mr. Ammar
Main Functions:
General Account, Imprest & Pension Account, Letter Of Credit (LC)
TPS Muzaffargarh Unit-wise Detail
Unit Name Type
Unit No.1
Steam
COD/Age
Installed
Dependabl Fuel
Capacity
e Capacity
FSA
09.09.1993 210
185
RFO/Gas F.O.
23.03.1994 210
200
RFO/Gas F.O.
20.02.1995 210
160
RFO/Gas F.O.
23.12.1997 320
245
RFO/Gas F.O.
14.02.1995 200
110
RFO/Gas F.O.
14.08.1995 200
100
RFO/Gas F.O.
Turbine
Unit No.2
Steam
Turbine
Unit No.3
Steam
Turbine
Unit No.4
Steam
Turbine
Unit No.5
Steam
Turbine
Unit No.6
Steam
Turbine
BUSINESS STRATEGY UNIT

A Business Strategy Unit is proposed to be set up to take up the task of
implementation and later lead corporate strategy function. CEO and
functional heads will organize themselves to work as a committee to create
and lead the Business Strategy Unit. The unit shall be staffed with one
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middle management level officer from each of the functions. The Business
Strategy Committee shall meet at least once in a fortnight to make decisions
and oversee progress on implementation.
A virtual project management unit with support of USAID/Energy Support
Program shall be set up to support implementation activities by organizing
short term technical assistance. Exit of the short term outfit will be gradual
and least problematic as it will be created only in a virtual sense by
allocating part time role of short term experts. This arrangement is likely to
create strong motivations for the companys Business Strategy Unit to
acquire skills by working closely with short term experts and expeditiously
take over lead role in implementation.
Internal leadership of the company shall take the center-stage role for
coordination of implementation activities. They shall themselves receive
orientation and technical advice to lead a process of positive change that
implementation activities aim to initiate and sustain.
Organization and processes provide management hardware for people to
transform inputs into outputs. Outcomes emerge from appropriate inputs put
through a right institutional and organizational apparatus. Management
improvements are a main thrust area of the Strategic Plan. The focus is on
creating a vibrant organization that can handle challenges of business
performance and results and become fully capable to solve their problems
and target and achieve any results that their strategic decisions target.
Change management & communication strategies

Implementation of business transformation activities critically depends on
acceptance and support of stakeholders. Involvement of stakeholders leads
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to ownership, minimizes resistance to change and creates positive attitudes

toward change. Leadership competencies are vital to process of cultural
change in corporate transformations. Leaders at all levels of management
influence behaviors and hence need to be enlisted as agents of change.
Communication strategies are used to ensure stakeholders involvement,
ownership and enthusiasm. Top leadership needs to take up central role in
communication strategies to promote a sense of association in the people
and enlist support of their team members. Vision, Mission and Shared Values
must be evolved to guide decisions, actions and attitudes. An organizationwide inclusive process needs to be designed and implemented to support the
people to articulate their vision and mission statements and a set of shared
values.
MARKETING DEPARTMENT
Generation, transmission and distribution are supply side segments of the
power market. For thermal power companies, oil and gas markets are
critically
important.
Under
present
market
regime,
apart
from
bulk
consumers, CPPA within the only transmission company, NTDC, acts as the
single buyer in the market.
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There has been a perpetual shortage in production and supply of electric

power which complicates computation of total demand (or un-served needs
backed by capacity to pay). NPGCL plants accounted for 6.48% of national
installed capacity and 9.6% of total thermal installed capacity as on June
2010. NPGCL production accounted for 7.23% of national production and
10.58% of total thermal production in the country for the fiscal year 20092010.Levels of demand and supply of electric power experienced in last 4
years and anticipated by NTDC during next 5 years are as in following table:
MARKET STRUCTURE AND MECHANISMS

Power market in Pakistan is composed of generation companies in public and
private sectors, a state owned transmission company NTDC and nine
distribution companies. KESC as a privatized integrated utility is responsible
for generation, transmission and distribution in its territory viz. Karachi.
Power generation sub-sector consists of WAPDA Hydro; state owned thermal
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generation companies (GENCOs) and private sector producers- IPPs. CPPA,

which is under NTDC, is the single-buyer for GENCOs and IPPs in the market
currently. NTDC purchases electric power from the power producers and sells
it to the distribution companies.
Gas and FO being the main fuels for thermal power generation, the two gas
companies and OMCs form an important part of the power market. Fuel
consumption is the linking point between power and other energy markets
and is an important driver of the power market in Pakistan. Institutional
mechanisms and legal instruments to provide strong market discipline are
likely to emerge from increased reliance on contractual mechanisms within a
legal framework at the next step of market evolution. PEPCO dissolution is
likely to necessitate reliance of public sector companies on contractual
mechanisms such as PPA, GSA and FSA to cover credit and counter party
performance risks.
MARKET & TARIFF REGULATION
NEPRA is the power sector regulator in the country. Efficient power market,
investor and consumer protection, performance standards and pricing are
important parts of the regulators mandate. Generation license and tariff
determinations of new entrants to the market give NEPRA gate-keepers
control over the future cost and capacity trends in the market. NEPRA
controls market entry and exit through licensing; prescribes and enforces
performance standards; determines tariff rates and provides advisory to
government on power sector.
Tariff model for generation stage pricing is based on cost plus fixed return on
equity, in principle. In practice, NEPRA determines reference tariff on the
basis of fixed one time thermal efficiency at average load.
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Fuel costs are billed as part of Energy Purchase Price (EPP), which is adjusted
for fuel price variation but no gain or loss due to subsequent variation in
thermal efficiencies is included. The other component is variable O&M
expense, which is adjusted with inflation index but was originally based on 3year average cost.
All other costs are meant to be recovered through Capacity Purchase Price
(CPP). Adjustments subsequent to original determination are periodically
made on the basis of inflation index. Financial costs and taxation are passthrough items, which are in effect reimbursed in exact amount as part of CPP.
MONITORING AND SURVEILLANCE (M&S)

It is the most important department of (Genco-III) Northern Power Generation
Company .Limited. Information technology deals all the enquiries of
employees. Monitoring and surveillance department works under the section
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of chief executive officers. So all complains first come in the chief executive
officers office then it come to the monitoring and surveillance department.
In the organization structure one manager of Monitoring and surveillance
which has three deputy managers. It divide different circle of Genco-III)
Northern Power Generation Company Limited among the deputy managers.
Monitoring and surveillance take full document about the complained after
full enquiry also listed views of people who directly or indirectly involved in
the case. It give recommendation of all kinds of complain. Monitoring and
surveillance taken recommendation according to the nature of complains.
All the complains come from chief executive officers office and after its
recommendation it depend on chief executive officers either he accept or
reject its recommendation. In Monitoring and surveillance the first manager
review complains then it given to deputy according to their respective circles
and division.
It takes all the data in three days and after listening views of people which
involved in the case gives decision. It deals all the cases which come from
chief executive officers office or FBI given to him for review.
CHIEF EXECUTIVE
OFFICERS
MANAGER
DEPUTY
MANAGE
R
DEPUTY
MANAGE
R
DEPUTY
MANAGE
R
DISTRIBUTION DEPARTMENT
All power houses in Punjab are interconnected through lines with each
other in Pakistan two types of electricity can be produced
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hydral electricity
thermal electricity
When there is shortage of water then more concentration are given to

thermal electricity. After producing the electricity through units then they are
distributed through mail lines. All mail lines are looked after by NTDC
(National Transmission and Distribution Company, Firstly named as GSO (Grid
station operation). Their main function is maintaining the main lines from
thermal house to General consummation.
The thermal power station Muzaffargarh generally provide electricity to these
main lines
KAPCO
New Multan -I
New Multan -II
New Multan -III
New Multan IV
They provide two lines of 220 Kv to LALPEER two lines to PARCO
All power Generation Companies are divided into three main Categories
Genco I
Genco II
Genco III
Genco I
In Genco I thermal houses are Jamshoro & Lakhra
Genco II
In Genco II thermal house are Guddu
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Genco III
In Genco II thermal house are Multan (MEPCO), Fasil Abad (FASCO),
Muzaffargarh.
When the electricity produced through units first of all there is PAKGEN
220kv Switch yard. This switch yard is used to step up the electricity and
then send to the grids of the cities. There is lot of loss of electricity through
220kv switch yard.
To avoid this problem WAPDA established in March 2000 with the help of APP
Company, 500 Kv switch yard to avoid these line losses. Approximately 30%
of electricity is lost in main lines. The purpose of 500kv switch yard is to
minimize these losses.
CUSTOMER SERVICES DEPARTMENT

Contact concerned distribution company for customer services. Respective
distribution companies under PEPCO are responsible to deal with all matters
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of their electricity consumers as per their procedures. Please explore the

website of your distribution companies for further details. The links of
distribution companies (DISCOs) are given below for facilitation.
1.
2.
3.
4.
5.
6.
7.
8.
LAHORE ELECTRIC SUPPLY COMPANY LIMITED

GUJRANWALA ELECTRIC POWER COMPANY
FAISALABAD ELECTRIC SUPPLY COMPANY
ISLAMABAD ELECTRIC SUPPLY COMPANY
MULTAN ELECTRIC POWER COMPANY
PESHAWAR ELECTRIC SUPPLY COMPANY
HYDERABAD ELECTRIC SUPPLY COMPANY LIMITED
QUETTA ELECTRIC SUPPLY COMPANY
TRAINING CENTER
General Manager (Training) office is functioning at WAPDA House, Lahore and
controls various training centers detailed below: a. WAPDA Staff College, Islamabad.
b. WAPDA Engineering Academy (Water & Power), Faisalabad
c. Thermal Generation Training Center, Guddu
d. Hydel Training Center, Mangla
e. Technical Services Group, Lahore
f. 8 Regional Training Centers (RTCs), one at each DISCO
Address:
734 WAPDA House, Lahore
Phone:(042)-9202003
Fax: (042)-
9202608
COMPLAIN CENTER
POWER THEFT
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Steeling of Power is crime against every Pakistani and who ever does it, is
our enemy. Please help PEPCO in its effort to stop power theft by reporting at
its toll free number 0800-84338. This is a free number for all calls including
NTC, PTCL, Mobiles or wireless phones.
Instructions for theft reporting:
Call the Toll free number 0800-
84338
Listen the instructions carefully
After pressing 1,
Record your message about
event
of
theft
(Please
give
maximum detail of location)

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FINANCIAL
ANALYSIS
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DEBT/EQUITY RATIO
Debt to equity ratio shows the extent to which debt financing is used relative
to debt to
Equity ratio= total debt/ shareholders equity.
Debt equity ratio of 2011
82762177725/8517568031= 9.717
Debt equity ratio of 2012
83343604779/4750202521 = 17.545
Equity ratio
12
10
8
Equity ratio
6
4
2
0
2011
2012
Equity ratio of 2011 is higher than 2012
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ACID TEST RATIO

It is the ratio of liquid assets to current liabilities
Quick ratio = current asset-inventories/current liabilities
For 2011
35992974684/49173251637=0.732
For 2012
34983724572/56482697788=0.619
Acid test ratio

0.76
0.74
0.72
0.7
0.68
Acid test ratio
0.66
0.64
0.62
0.6
0.58
0.56
2011
2012
2011s is the better after the 2012
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EARNINGS PER SHARE

This ratio determines the amount of income that has been earned on each
share outstanding.
Earnings per share = net profit after tax/total no of shares
For 2011
0/50000=0
For 2012
0/50000=0
Earnings per share is not satisfied because Genco III gone into loss
NET PROFIT MARGIN

It is the ratio of net profit (after taxes) to net sales. It is expressed as
percentage.
Net profit margin = N.P.A.T/total income*100
For 2011
0/85286568=0
For 2012
0/720414698=0
Genco III net profit margin nil so its very bad sign.
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DIVIDEND PER SHARE

Dividend per share = total dividend/no. of share
For 2011
2635748766/50000=52714.97
For 2012
0/50000=0
dividend per share

60000
50000
40000
dividend per share
30000
20000
10000
0
2011
2012
Analysis
In 2011 the dividend per share is high. In 2012 it reaches at zero.
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CURRENT RATIO
Current ratio = current asset / current liabilities
For 2011
35992974684/49173251637=0.732
For 2012
34983724572/56482697788=0.619
Current ratio
3
2.5
2
Current ratio
1.5
1
0.5
0
2011
2012
Current ratio value is less than 1 means that the firm is unable to pay its
current liabilities completely by it current assets. It is because the difference
between assets and liabilities decreased.
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FIXED ASSET TURN OVER

This ratio measures the efficiency and profit earning capacity of the concern.
Fixed asset turnover ratio = sales/ net fixed asset
For 2011
66213840693/46369044856=1.428
For 2012
75796292095/47955717886=1.580
fixed asset turnover ratio

3
2.5
2
fixed asset turnover ratio
1.5
1
0.5
0
2011
2012
The higher the ratio the better because a high ratio indicate the business has
less money invested in fixed asset for each rupee of sales revenue. In 2012
fixed asset turnover ratio is high as compare to other. This is better sign.
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RETURN ON ASSET RATIO

Return on asset ratio = net income/ average total assets
For 2011
=0
For 2012
=0
Both the year company bears loss because there is no profit in both years.
RETURN ON EQUITY RATIO

Return on equity = Net profit/Equity
For 2011
=0
For 2012
=0
This ratio shows what company earns at each rupee of investment but the
company bears loss.
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DEBT RATIO
Debt ratio = Total liabilities/total assets
For 2011
74244609694/82762177725 = 0.897
For 2012
78593402258/83343604779 = 0.943
Debt ratio
0.95
0.94
0.93
0.92
Debt ratio
0.91
0.9
0.89
0.88
0.87
2011
2012
In 2011 company finance is based on 89% of liabilities and 11% of assets. In

2012 company finance based on 94% on liabilities an only 6% of assets. In
debt ratio high the ratios then leverage and financial indebtedness will be
high.
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EQUITY TO ASSET RATIO

Equity to asset ratio = Total equity/total asset
For 2011
8517568031/82762177725 = 0.103
For 2012
4750202521/83343604779 = 0.057
Equity to asset ratio

0.12
0.1
0.08
Equity to asset ratio
0.06
0.04
0.02
0
2011
2012
Equity to asset ratio of 2011 is higher than 2012.
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SWOT
ANALYSES
STRENGTHS
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The largest Generation Company in Public Sector.

Provision of Dual Fuel Firing
Power Plants are located in the load centers.
Availability of land for capital expansion.
Road and Rail facilities for furnace oil supply.
Highly qualified skilled labor available.
Established infrastructure.
Experienced & dedicated engineers available.
Correction of the bills
Co-location of XEN & RO offices
Good relation with different departments
Restructure of stores to ensure prompt availability
Printing a last 12 month history on bill
Provide full facility to customer for paying bill
Central chief executive customer service center
Provide a computerized service center to each circle
Mobile customer service facility
Establish a marketing cell
Provide high technology for development and maintenance
WEAKNESSES
Heat rate is high as compared with the design value due to
deterioration of the plant.
Lack of capital investment.
Drain out of skilled manpower to IPPs/abroad and Rental Power Plants
due to low salaries as compared to private sectors.
Ineffective preventive maintenance due to non-availability of spare
parts and delay approvals of shutdown of the units.

Ineffective performance appraisal system.
Delayed decision making.
Ineffective material management system.
Non availability of GAS.
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They take so much time for processing any project.

Lack of communication level between employees.
Most of department based on manual system.
Lack of loyalty in front of customer.
Administrative cost of the company is very high due to which the
profitability of the company decreases.

There is still improvement of technology in the genco computers.
There is no objective / target for employees
Performance of service center is not too great for satisfaction to
customer
People has less trust over company
Dealing to customer not too much efficient
OPPORTUNITIES
Use of land for expansion.

Vicinity of Furnace Oil Refinery.
Modification / Rehabilitation of Plant in process.
Expansion in installed capacity.
Goals of corporation and commercialization plan at one time.
Provide a facility of mobile customer services center at each circle.
For reduction in energy loses used the distribution system
rehabilitation under system augmentation program (SAP).

It should be on time development works an LT/HT proposals under SAP.
Establish a new grid station.
Extension of existing grid station.
Transmission lines.
Conversion of our all transportation to CNG.
Provide a facility of new vehicles for field and operation sector
employees.
No competitor in local market so it can increase shares
Services easily in market
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THREATS
Influence of Oil Mafia.

Lack of Fuel/Gas Supply.
Security lapses.
Dishonesty of officials.
Low government budget.
Not a good support for supplier.
Heavy taxes by government.
Daily differ fluctuation of supply is the permanent treat.
Day by day technology change.
Overall performance is decreasing.
Some government project spoilage the GENCO image.
Politic in employees
Labor unions are very awful for company.
In future market value will be decreases.
Political environment are decreasing the efficiency of the company.
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RECOMMENDATIONS
The trust of the customer must be retained.

The employees must be well trained for customer services issues.
Attendance system of the employees must be changed.
Give full safety to the employees.
Communication gap between upper level and lower level employees
must be improved.
The procedure of new connection meter must be reduced staff.
The organization hierarchy must be reduced in the organization.
Give more concentration for the low level employees.
Must give the safety precaution to the employees.
Take some steps for create understanding between different
departments.
To increase their productivity.
The top management should give authority to the managers to take
decision according to the situation at any time and in the absence of
top management.
Appoint skillful and talented people to increase the productivity and
utility of company.
Arrange different seminars and conferences for employees.
All the duties and responsibilities of each employee should be clear.
Try to more use of latest technology in offices.
There should be decentralization of decision making.
Management should be recruit right person for right job.
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Behavior with customer should be improved.

Make better plan for stop the line loses.
Offer new training course to the employees.
The management should have multi skilled so achieve at economy of
scale.
Pay procedure should be clear and at a time.
Provide friendly working environment.
Make some specific plans for internees.
Reduce work load to the employees.
Regular reconciliation is made to keep the records streamline.
Manual accounts are replaced with latest accounting software.
Wapda employees may be encouraged for accepting challenging jobs
by the Authority.
Efficient and motivated employees should be rewarded
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CONCLUSIO
N
I chose the (Genco-III) Northern Power Generation Company Limited
for
my
internship training, which is necessary for my 31/2 year MBA degree. I worked in
head office of (Genco-III) Northern Power Generation Company Limited for six weeks
in different departments including HR, Project management, and marketing and
especially in finance department. During my internship I worked in these
departments under the supervisions of concerned different managers. The staff at
(Genco-III) Northern Power Generation Company Limited is very corporative and
supportive. I try to give best and careful analyzed all the department of the
company. I take information of these departments. Although the six weeks training
duration is very short period for study of an organization but I learned a lot due to
the help of the managers. I worked in different departments of the company during
my internship training. The working hours for duty are 8am to 4pm with tow
holidays in a week.
I started my training from HR and admin department during first week of my
training under the supervision of HR admin manager. Director HR of heads this
department. During my internship in this department I leaned bout different
function of HR. I also learned about all the activities regarding selection,
recruitment, etc.. I passed some days in admin section which is necessary

for management to know about training and development, needs for the
stationary, measurement for now the performance,. I also learned about
inquiry process because it functions of legal department which control or
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under the HR department. HR department is also responsible for the analysis

of
the
performance
of
employees.
The
HR
department
deals
with
recruitment, job placement, test and interview of new employees. HR

department also performs training, promotion and retirement. I also learned
about the HR policies of the companies that are concerned with the problems
of providing and handling or create the motivational environment that is
required for the business.
Next week I join administration department. Administration department
consist
on
administration
managers,
deputy
manager
administration,
assistant manager, HR executive and clerical staff. I worked under the

manager. During my training in this department I learned that how the
appointment record, employee record is maintained. How the performance of
the employee is measured. This department also deals with issuance of show
cause notice, charge sheet and termination. Staff of this department is very
cooperative. This section is also prepares the promotion cases of the
employees and also maintain the leaves records, increment record, security
issues and maintenance of vehicles. The director HR and admin advise
management concerning various relations and represent management in the
handling the complaints of employees. I also learned that how billing of
overtime, TA/DA, contract bankers record of workers for annual increments
prepare also preparation of government returns. This department also
controls the wages system and HRIS. The duties of assistant manager
administration are recommendation, telephone, transport, security, audit,
procurement,
compensation/
benefits
and
labor
management.
After
completing my two weeks in HR and admin department I attached with

marketing cell. Due to monopoly in market there is no such marketing in
Genco. It deals with the customers who went new connection of electricity.
The entire tariffs are made in marketing cell. This is also so cooperative unit.
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Marketing cell consist of one manager and two assistant managers. I worked
with the assistant manager. She helps me very well in explaining tariff.
Marketing cell also has frontline which deals with the customer. I also worked
two days with frontline employees.
After marketing cell I do one week internship in customer and service
directorate. The director of customer and service is the head of this
department. This is so much busy department it totally concern with the
customers. Customer and service department do work under the chief
executive office. Customer service department has frontline which deal
directly customer and note down their problems. It all deal with billing
system. Basically customer come for correction in bill, exceed of units,
amendments, etc. this is only for the favor of customers. It plans all the
policies for the welfare of customers. Genco provide different benefit like
segregation, amendment, installation, and increase in date of bill.
Main work I perform is in finance department. PMU finance is totally based on
finance department. All the employees take from main finance department.
It only makes for the calculation of all the funding of ADB or World Bank.
Procurement deals with the bid of tender. Inspection of the project creates a
safety environment for workers. The main achievement for me in finance
department is to complete a project that deputy manager assign to me as a
task. This is CFI distribution monitoring and tracking. I deputy manager give
this project as my assignment learned so much in this project. It is the
national level project. I make a plan for its distribution and monitoring.
After this I attach with the monitoring and surveillance department. Its
under the section of CEO. Its basically enquiry section. IT is enquiry the
employees of Genco. The M&S note all the complaints against their
employees. It hearing both the parties and give suggestion to CEO which
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reject and accept the decision.it collect all the date and then recommend it
on decision.
At last I put SWOT analysis of Genco Company that I realized there and put
recommendation that will be beneficially for company.
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Annex
ure
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INTERNSHIP REPORT of GENCO-III

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INTERNSHIP REPORT

(Genco-III) Northern Power Generation Company

(Genco-III) Northern Power Generation Company

Practice makes a man perfect and practical knowledge is essential in order to

Theoretical knowledge is not such

important without with combination of practical knowledge. It is the part of

(Genco-III) Northern Power Generation Company

(Genco-III) Northern Power Generation Company

(Genco-III) Northern Power Generation Company

PAKISTAN ELECTRIC POWER COMPANY

NORTHERN POWER GENERATION COMPANY LIMITED

Profile of bod and sr. Management

Human resource management

Management information system

Finance/ coordination wing

(Genco-III) Northern Power Generation Company

Business strategy unit

Monitoring and surveillance

Customer services department

(Genco-III) Northern Power Generation Company

2 units of 210MW each and a

separate unit namely unit-IV having a capacity of 320MW.So a total of

(Genco-III) Northern Power Generation Company

WAPDA is now fully responsible for the development of Hydel Power

and Water Sector Projects.

Directors are from Private Sectors).

sector (approved by ECC).

Corporate Entities and execution of loan transfer is complete.

Tariff for all Distribution Companies replacing unified WAPDA Tariff.

(Genco-III) Northern Power Generation Company

Supplementary Agreement and Fuel Supply Agreement etc. were

were drafted and got approved from in 2007.

(Economic Affairs Division) GOP.

The Charter of Duties of WAPDA is to investigate, plan and execute schemes

Generation, Transmission and Distribution of Power.

The Authority comprises of a Chairman and three (3) Members working

(Genco-III) Northern Power Generation Company

PAKISTAN ELECTRIC POWER COMPANY

(Genco-III) Northern Power Generation Company

meet demand; WAPDA's

inefficiencies, 'demand suppression' and high tariff policy, proliferated theft.

comprehensive strategy whereby WAPDA's vertical-monolithic Power Wing

(Genco-III) Northern Power Generation Company

Companies Ordinance 1984. These are: three generation, one transmission

(Genco-III) Northern Power Generation Company

Four (4) Thermal Power Generation Companies (GENCOs)

experience for formulation of effective corporate policies.

autonomous commercial operation.

completion by June, 2000.

Value Tax, Income tax and Wealth Tax.

(Genco-III) Northern Power Generation Company

Privatization schedule for Faisalabad Electric Supply Company (FESCO)

finalized & sent to the Privatization Commission of Pakistan

and finalized by the Distribution companies

Electric Power Company (GEPCO) completed

(Genco-III) Northern Power Generation Company

PEPCO's Thermal Power Generation is mainly based on generation of power

Muzaffargarh and Lakhra Power Generation Company Limited (GENCO-IV) at

(Genco-III) Northern Power Generation Company

TPS Jamshoro TPS Guddu TPS Muzaffargarh

TPS Quetta NGPS Multan

(Genco-III) Northern Power Generation Company

(Genco-III) Northern Power Generation Company